Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 23, 2024

MidWestOne Financial Group, Inc.

(Exact name of registrant as specified in its charter)

Commission file number 001-35968


Iowa						42-1206172
(State or other jurisdiction of incorporation)						(I.R.S. Employer Identification Number)

102 South Clinton Street

Iowa City, Iowa 52240

(Address of principal executive offices, including zip code)

(319) 356-5800

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $1.00 par value

MOFG

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On July 25, 2024, MidWestOne Financial Group, Inc. (the “Company”) issued a press release announcing its earnings for the three months and six months ended June 30, 2024. The press release is furnished herewith as Exhibit 99.1. In addition, the Company is providing a financial supplement furnished as Exhibit 99.2 to this Current Report on Form 8-K.

The information in this item and the attached press release and financial supplement shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.

Item 8.01. Other Events.

The Board of Directors of the Company declared a cash dividend of $0.2425 per common share on July 23, 2024. The dividend is payable September 17, 2024, to shareholders of record at the close of business on September 3, 2024.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.



99.1						MidWestOne Financial Group, Inc. press release dated July 25, 2024
99.2						MidWestOne Financial Group, Inc. financial supplement dated July 25, 2024
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

MIDWESTONE FINANCIAL GROUP, INC.

Dated:

July 25, 2024

By:

/s/ BARRY S. RAY

Barry S. Ray

Chief Financial Officer


FOR IMMEDIATE RELEASE						July 25, 2024

MIDWESTONE FINANCIAL GROUP, INC.

REPORTS FINANCIAL RESULTS FOR THE

SECOND QUARTER OF 2024

Iowa City, Iowa - MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we”, “our”, or the "Company”) today reported results for the second quarter of 2024.

Second Quarter 2024 Summary1

•Completed sale of our Florida banking operations for a 7.5% deposit premium.

◦Included in the sale were $133.3 million of deposits and $163.6 million of loans.

•Net income of $15.8 million, or $1.00 per diluted common share.

◦Revenue of $57.9 million, which included gain on sale of $11.1 million and a positive MSR valuation adjustment of $129 thousand.

◦Noninterest expense of $35.8 million, which included merger-related costs of $854 thousand.

•Net interest margin (tax equivalent) expanded 8 bps to 2.41%2.

•Classified loans declined 9%; net charge-off ratio was 0.05%.

•Tangible book value per share of $28.272, an increase of $1.13 or 4%

CEO Commentary

Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, “We delivered another solid quarter of strategic plan execution highlighted by the divestiture of our Florida operations for a 7.5% net deposit premium, which completed our geographic re-alignment announced last September and will allow complete focus on our targeted growth regions. Our net interest margin, which inflected in the first quarter of 2024, expanded an additional 8 bps in the second quarter of 2024 through a combination of solid, well-priced loan originations, continued earning asset mix shift, and well-controlled deposit costs. Our fee generating products and services showed nice year-over-year increases, including a 12% improvement in wealth management revenues and a $476 thousand improvement from our customer back-to-back swap product. Asset quality metrics improved in the quarter led by a 9% reduction in classified assets.

I’m also very pleased with the level of talent acquisition in the first half of 2024 and second quarter highlights included our new EVP, Chief Information Officer and new SVP, Chief Marketing Officer. Even with significant talent, product and platform investments, our core noninterest expense levels approximate year ago levels.

These accomplishments are due to the engagement and expertise of our collective MOFG team and we are humbled to once again receive the honor of being an Iowa, and USA, Top Workplace."

1 Second Quarter Summary compares to the first quarter of 2024 (the "linked quarter") unless noted.

2 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.


	As of or for the quarter ended									Six Months Ended
(Dollars in thousands, except per share amounts and as noted)	June 30,			March 31,			June 30,			June 30,			June 30,
	2024			2024			2023			2024			2023
Financial Results


Revenue	$	57,901		$	44,481		$	45,708		$	102,382		$	81,738
Credit loss expense	1,267			4,689			1,597			5,956			2,530
Noninterest expense	35,761			35,565			34,919			71,326			68,238


Net income	15,819			3,269			7,594			19,088			8,991
Per Common Share
Diluted earnings per share	$	1.00		$	0.21		$	0.48		$	1.21		$	0.57
Book value	34.44			33.53			31.96			34.44			31.96
Tangible book value(1)	28.27			27.14			26.26			28.27			26.26
Balance Sheet & Credit Quality
Loans In millions	$	4,287.2		$	4,414.6		$	4,018.6		$	4,287.2		$	4,018.6
Investment securities In millions	1,824.1			1,862.2			2,003.1			1,824.1			2,003.1
Deposits In millions	5,412.4			5,585.2			5,445.4			5,412.4			5,445.4
Net loan charge-offs In millions	0.5			0.2			0.9			0.7			1.2
Allowance for credit losses ratio	1.26		%	1.27		%	1.25		%	1.26		%	1.25		%
Selected Ratios
Return on average assets	0.95		%	0.20		%	0.47		%	0.58		%	0.28		%
Net interest margin, tax equivalent(1)	2.41		%	2.33		%	2.52		%	2.37		%	2.63		%
Return on average equity	11.91		%	2.49		%	6.03		%	7.23		%	3.61		%
Return on average tangible equity(1)	15.74		%	4.18		%	8.50		%	9.98		%	5.65		%
Efficiency ratio(1)	56.29		%	71.28		%	71.13		%	62.83		%	66.56		%

(1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

GEOGRAPHIC RE-ALIGNMENT

Florida Banking Operations Divestiture

On June 7, 2024, we completed the sale of our Florida banking operations for a 7.5% deposit premium, which consisted of one bank branch in each of Naples and Ft. Myers, Florida. The sale included all premises and equipment at those locations. In addition, the sale involved the assignment of deposits totaling $133.3 million and loans totaling $163.6 million.

Denver Bankshares, Inc. Acquisition

On January 31, 2024, we completed our acquisition of Denver Bankshares, Inc. ("DNVB") and its wholly-owned banking subsidiary, the Bank of Denver. The assets acquired and liabilities assumed have been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their fair values as of the January 31, 2024 acquisition date, net of any applicable tax effects. The Company considers all purchase accounting estimates provisional and fair values are subject to refinement for up to one year after the close date.

The table below summarizes the amounts recognized at the acquisition date for each major class of assets acquired and liabilities assumed:


(In thousands)	As of January 31, 2024

Merger consideration
Cash consideration	$	32,600
Identifiable net assets acquired, at fair value
Assets acquired
Cash and due from banks	462
Interest earning deposits in banks	3,517
Debt securities	52,493
Loans held for investment	207,095
Premises and equipment	13,470
Core deposit intangible	7,100
Other assets	4,987
Total assets acquired	289,124
Liabilities assumed
Deposits	(224,248)
Short-term borrowings	(37,500)
Other liabilities	(3,417)
Total liabilities assumed	(265,165)
Identifiable net assets acquired, at fair value	23,959
Goodwill	$	8,641

REVENUE REVIEW


Revenue							Change		Change
							2Q24 vs		2Q24 vs
(Dollars in thousands)	2Q24		1Q24		2Q23		1Q24		2Q23
Net interest income	$	36,347	$	34,731	$	36,962	5	%	(2)	%
Noninterest income	21,554		9,750		8,746		121	%	146	%
Total revenue, net of interest expense	$	57,901	$	44,481	$	45,708	30	%	27	%

Total revenue for the second quarter of 2024 increased $13.4 million from the first quarter of 2024 due to higher noninterest income and net interest income during the quarter. When compared to the second quarter of 2023, total revenue increased $12.2 million due to higher noninterest income, due primarily to the gain on sale from our Florida banking operations, partially offset by lower net interest income due primarily to net interest margin compression.

Net interest income of $36.3 million for the second quarter of 2024 increased $1.6 million from the first quarter of 2024, primarily due to higher interest earning asset volumes and yields, partially offset by higher interest bearing liability volumes and costs. When compared to the second quarter of 2023, net interest income decreased $0.6 million, primarily due to higher funding costs and volumes, partially offset by higher interest earning asset volumes and yields.

The Company's tax equivalent net interest margin was 2.41%3 in the second quarter of 2024, compared to 2.33%3 in the first quarter of 2024, as higher earning asset yields more than offset increased funding costs. Total interest earning assets yield during the second quarter of 2024 increased 16 bps from the first quarter of 2024 as a result of an increase in loan yields of 18 bps. The cost of interest bearing liabilities during the second quarter of 2024 increased 10 bps, to 2.85%, due primarily to interest bearing deposit costs of 2.54%, short-term borrowing costs of 4.86%, and long-term debt of 6.95%, which increased 9 bps, 4 bps, and 9 bps, respectively, from the first quarter of 2024. Our cycle-to-date interest bearing deposit beta was 43%.

The Company's tax equivalent net interest margin was 2.41%3 in the second quarter of 2024, compared to 2.52%3 in the second quarter of 2023, driven by higher funding costs, partially offset by higher interest earning asset yields. The cost of interest bearing liabilities increased 87 bps to 2.85%, primarily due to interest bearing deposit costs of 2.54%, short-term borrowing costs of 4.86%, and long-term debt costs of 6.95%, which increased 75 bps, 195 bps and 57 bps, respectively from the second quarter of 2023. Total interest earning assets yield increased 60 bps from the second quarter of 2023, primarily as a result of an increase in loan yields of 64 bps.


Noninterest Income							Change		Change
							2Q24 vs		2Q24 vs
(In thousands)	2Q24		1Q24		2Q23		1Q24		2Q23
Investment services and trust activities	$	3,504	$	3,503	$	3,119	—	%	12	%
Service charges and fees	2,156		2,144		2,047		1	%	5	%
Card revenue	1,907		1,943		1,847		(2)	%	3	%
Loan revenue	1,525		856		909		78	%	68	%
Bank-owned life insurance	668		660		616		1	%	8	%
Investment securities gains (losses), net	33		36		(2)		(8)	%	n/m
Other	11,761		608		210		n/m		n/m
Total noninterest income	$	21,554	$	9,750	$	8,746	121	%	146	%

MSR adjustment (included above in Loan revenue)	129		(368)		(581)		(135)	%	(122)	%
Gain on branch sale (included above in Other)	11,056		—		—		n/m		n/m
(n/m) - Not meaningful

Noninterest income for the second quarter of 2024 increased $11.8 million from the linked quarter, primarily due to the sale of our Florida banking operations, which resulted in a gain on sale of $11.1 million that was recorded in other revenue, coupled with an increase of $0.7 million in loan revenue. The increase in loan revenue primarily reflected a favorable quarter-over-quarter change in the fair value of our mortgage servicing rights, from a negative adjustment of $368 thousand in the first quarter of 2024 to a positive adjustment of $129 thousand in the second quarter of 2024. Also contributing to the increase in noninterest income compared to the linked quarter was an increase of $0.3 million in customer back to back swap origination fee income, which was recorded in other revenue.

Noninterest income for the second quarter of 2024 increased $12.8 million from the second quarter of 2023, primarily due to the gain on sale of $11.1 million previously noted. Loan revenue increased $0.6 million and reflected the favorable year-over-year change in the fair value of our mortgage servicing rights, from a negative adjustment of $581 thousand in the second quarter of 2023 to a positive adjustment of $129 thousand in the second quarter of 2024. Also contributing to the increase in noninterest income compared to the second quarter of 2023 was an increase of $0.5 million in customer back to back swap origination fee income, which was recorded in other revenue, and an increase of $0.4 million in investment services and trust activities revenue, driven by growth in assets under administration and market valuation.

3 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

EXPENSE REVIEW


Noninterest Expense							Change		Change
							2Q24 vs		2Q24 vs
(In thousands)	2Q24		1Q24		2Q23		1Q24		2Q23
Compensation and employee benefits	$	20,985	$	20,930	$	20,386	—	%	3	%
Occupancy expense of premises, net	2,435		2,813		2,574		(13)	%	(5)	%
Equipment	2,530		2,600		2,435		(3)	%	4	%
Legal and professional	2,253		2,059		1,682		9	%	34	%
Data processing	1,645		1,360		1,521		21	%	8	%
Marketing	636		598		1,142		6	%	(44)	%
Amortization of intangibles	1,593		1,637		1,594		(3)	%	—	%
FDIC insurance	1,051		942		862		12	%	22	%
Communications	191		196		260		(3)	%	(27)	%
Foreclosed assets, net	138		358		(6)		(61)	%	n/m
Other	2,304		2,072		2,469		11	%	(7)	%


Total noninterest expense	$	35,761	$	35,565	$	34,919	1	%	2	%
(n/m) - Not meaningful


Merger-related Expenses

(In thousands)	2Q24		1Q24		2Q23
Compensation and employee benefits	$	73	$	241	$	—
Occupancy expense of premises, net	—		152		—
Equipment	28		149		—
Legal and professional	462		573		—
Data processing	251		61		—
Marketing	—		32		—
Communications	8		1		—
Other	32		105		—
Total merger-related expenses	$	854	$	1,314	$	—

Noninterest expense for the second quarter of 2024 increased $0.2 million from the linked quarter primarily due to increases of $0.3 million, $0.2 million and $0.2 million in data processing, other, and legal and professional expenses, respectively. The increase in data processing expense was primarily driven by merger-related expenses. The increase in other expense was primarily driven by increases in operating losses and loan expenses. The increase in legal and professional expense was due to increased costs for other outside services, consulting, and audit expense. Partially offsetting these increases was a decline in occupancy expense of premises, net, of $0.4 million, primarily due to a decrease in rental expense and grounds upkeep, and $0.2 million of foreclosed assets, net, stemming from the first quarter of 2024 write-down of other real estate owned, which did not recur in the second quarter of 2024.

Noninterest expense for the second quarter of 2024 increased $0.8 million from the second quarter of 2023 primarily due to increases of $0.6 million in both compensation and employee benefits and legal and professional expenses. The increase in compensation and employee benefits expense was primarily driven by annual compensation adjustments, increased headcount as a result of the DNVB acquisition, increased incentive and commission expense, and merger-related expenses. The increase in legal and professional expense stemmed primarily from higher merger-related expenses. Partially offsetting these increases was a decline of $0.5 million in marketing.

The Company's effective tax rate was 24.0% in the second quarter of 2024, compared to 22.7% in the linked quarter. The increase in the effective tax rate reflected higher taxable income from the Florida banking operations gain on sale previously noted, which has a higher effective tax rate due to the non-taxable allocation of goodwill. The effective income tax rate for 2024 is expected to be 21-23%.

BALANCE SHEET REVIEW

Total assets were $6.58 billion at June 30, 2024, compared to $6.75 billion at March 31, 2024 and $6.52 billion at June 30, 2023. The decrease from March 31, 2024 was primarily driven by the sale of our Florida banking operations and lower securities balances. Compared to June 30, 2023, the increase was primarily driven by the assets acquired from the acquisition of DNVB, organic loan growth, and higher line of credit usage, partially offset by the sale of our Florida banking operations and lower securities balances due to balance sheet repositioning executed in fourth quarter of 2023 and calls, maturities, and paydowns.


Loans Held for Investment	June 30, 2024				March 31, 2024				June 30, 2023
	Balance		% of Total		Balance		% of Total		Balance		% of Total
(Dollars in thousands)
Commercial and industrial	$	1,120,983	26.1	%	$	1,105,718	25.0	%	$	1,089,269	27.1	%
Agricultural	107,983		2.5		113,029		2.6		106,148		2.6
Commercial real estate
Construction and development	351,646		8.2		403,571		9.1		313,836		7.8
Farmland	183,641		4.3		184,109		4.2		183,378		4.6
Multifamily	430,054		10.0		409,504		9.3		305,519		7.6
Other	1,348,515		31.5		1,440,645		32.7		1,331,886		33.1
Total commercial real estate	2,313,856		54.0		2,437,829		55.3		2,134,619		53.1
Residential real estate
One-to-four family first liens	492,541		11.5		495,408		11.2		448,096		11.2
One-to-four family junior liens	176,105		4.1		182,001		4.1		168,755		4.2
Total residential real estate	668,646		15.6		677,409		15.3		616,851		15.4
Consumer	75,764		1.8		80,661		1.8		71,762		1.8
Loans held for investment, net of unearned income	$	4,287,232	100.0	%	$	4,414,646	100.0	%	$	4,018,649	100.0	%

Total commitments to extend credit	$	1,200,605			$	1,230,612			$	1,296,719

Loans held for investment, net of unearned income, decreased $127.4 million, or 2.9%, to $4.29 billion from $4.41 billion at March 31, 2024. The decrease from the first quarter of 2024 was driven primarily by $163.6 million of loans divested as part of the sale of our Florida banking operations and lower line of credit usage. -

Loans held for investment, net of unearned income, increased $268.6 million, or 6.7%, to $4.29 billion from $4.02 billion at June 30, 2023. The increase from the second quarter of 2023 was driven primarily by the loans acquired in the DNVB acquisition, organic loan growth, and higher line of credit usage. Partially offsetting these identified increases was a decline in loans held for investment, net of unearned income stemming from the divestiture of our Florida banking operations.


Investment Securities	June 30, 2024				March 31, 2024				June 30, 2023
(Dollars in thousands)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Available for sale	$	771,034	42.3	%	$	797,230	42.8	%	$	903,520	45.1	%
Held to maturity	1,053,080		57.7	%	1,064,939		57.2	%	1,099,569		54.9	%
Total investment securities	$	1,824,114			$	1,862,169			$	2,003,089

Investment securities at June 30, 2024 were $1.82 billion, decreasing $38.1 million from March 31, 2024 and $179.0 million from June 30, 2023. The decrease from the first quarter of 2024 was primarily due to principal cash flows received from scheduled payments, calls, and maturities. The decrease from the second quarter of 2023 was primarily due to balance sheet repositioning executed in fourth quarter of 2023 and principal cash flows received from scheduled payments, calls, and maturities.


Deposits	June 30, 2024				March 31, 2024				June 30, 2023
(Dollars in thousands)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Noninterest bearing deposits	$	882,472	16.3	%	$	920,764	16.5	%	$	897,923	16.5	%
Interest checking deposits	1,284,243		23.7		1,349,823		24.2		1,397,276		25.7
Money market deposits	1,043,376		19.3		1,122,717		20.1		1,096,432		20.1
Savings deposits	745,639		13.8		728,276		13.0		585,967		10.8
Time deposits of $250 and under	803,301		14.8		787,851		14.1		648,586		11.9
Total core deposits	4,759,031		87.9		4,909,431		87.9		4,626,184		85.0
Brokered time deposits	196,000		3.6		205,000		3.7		365,623		6.7
Time deposits over $250	457,388		8.5		470,805		8.4		453,640		8.3

Total deposits	$	5,412,419	100.0	%	$	5,585,236	100.0	%	$	5,445,447	100.0	%

Deposits declined $172.8 million, or 3.1%, to $5.41 billion, from $5.59 billion at March 31, 2024, primarily due to $133.3 million of deposits divested as part of the sale of our Florida banking operations. Included in the deposits that were sold were $31.8 million of noninterest bearing deposits. Total deposits decreased $33.0 million, or 0.6%, from $5.45 billion at June 30, 2023 primarily due to the sale of our Florida banking operations and a decline of $169.6 million in brokered deposits, partially offset by deposits assumed in the DNVB acquisition.


Borrowed Funds	June 30, 2024				March 31, 2024				June 30, 2023
(Dollars in thousands)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Short-term borrowings	$	414,684	78.3	%	$	422,988	77.6	%	$	362,054	74.2	%
Long-term debt	114,839		21.7	%	122,066		22.4	%	125,752		25.8	%
Total borrowed funds	$	529,523			$	545,054			$	487,806

Borrowed funds were $529.5 million at June 30, 2024, a decrease of $15.5 million from March 31, 2024 and an increase of $41.7 million from June 30, 2023. The decrease compared to the linked quarter was due to a $13 million payoff of a revolving credit facility and scheduled payments on long-term debt, partially offset by an increase in overnight borrowings from the Federal Home Loan Bank and securities sold under agreements to repurchase. The increase compared to June 30, 2023 was primarily due to higher Bank Term Funding Program borrowings, partially offset by lower securities sold under agreements to repurchase, overnight borrowings from the Federal Home Loan Bank, and scheduled payments on long-term debt.


Capital	June 30,			March 31,			June 30,
(Dollars in thousands)	2024 (1)			2024			2023
Total shareholders' equity	$	543,286		$	528,040		$	501,341
Accumulated other comprehensive loss	(58,135)			(60,804)			(82,704)
MidWestOne Financial Group, Inc. Consolidated
Tier 1 leverage to average assets ratio	8.29		%	8.16		%	8.47		%
Common equity tier 1 capital to risk-weighted assets ratio	9.56		%	8.98		%	9.36		%
Tier 1 capital to risk-weighted assets ratio	10.35		%	9.75		%	10.15		%
Total capital to risk-weighted assets ratio	12.62		%	11.97		%	12.26		%
MidWestOne Bank
Tier 1 leverage to average assets ratio	9.24		%	9.36		%	9.42		%
Common equity tier 1 capital to risk-weighted assets ratio	11.55		%	11.20		%	11.31		%
Tier 1 capital to risk-weighted assets ratio	11.55		%	11.20		%	11.31		%
Total capital to risk-weighted assets ratio	12.61		%	12.25		%	12.22		%
(1) Regulatory capital ratios for June 30, 2024 are preliminary

Total shareholders' equity at June 30, 2024 increased $15.2 million from March 31, 2024, driven by an increase in retained earnings and decreases in accumulated other comprehensive loss and treasury stock. Total shareholders' equity at June 30, 2024 increased $41.9 million from June 30, 2023, driven by decreases in accumulated other comprehensive loss and treasury stock, coupled with an increase in retained earnings.

Accumulated other comprehensive loss at June 30, 2024 decreased $2.7 million compared to March 31, 2024, primarily due to an increase in available for sale securities valuations. Accumulated other comprehensive loss decreased $24.6 million from June 30, 2023, primarily due to an increase in available for sale securities valuations and the recognition of the loss from the fourth quarter 2023 sale of securities as part of a balance sheet repositioning.

On July 23, 2024, the Board of Directors of the Company declared a cash dividend of $0.2425 per common share. The dividend is payable September 17, 2024, to shareholders of record at the close of business on September 3, 2024.

No common shares were repurchased by the Company during the period March 31, 2024 through June 30, 2024 or for the subsequent period through July 25, 2024. The current share repurchase program allows for the repurchase of up to $15.0 million of the Company's common shares. As of June 30, 2024, $15.0 million was available under this program.

CREDIT QUALITY REVIEW


Credit Quality	As of or For the Three Months Ended
	June 30,			March 31,			June 30,
(Dollars in thousands)	2024			2024			2023
Credit loss expense related to loans	$	467		$	4,589		$	1,497
Net charge-offs	524			189			897
Allowance for credit losses	53,900			55,900			50,400
Pass	$	3,991,692		$	4,098,102		$	3,769,309
Special Mention / Watch	146,253			152,604			133,904
Classified	149,287			163,940			115,436


Loans greater than 30 days past due and accruing	$	9,358		$	8,772		$	6,201
Nonperforming loans	$	25,128		$	29,267		$	14,448

Nonperforming assets	31,181			33,164			14,448

Net charge-off ratio(1)	0.05		%	0.02		%	0.09		%
Classified loans ratio(2)	3.48		%	3.71		%	2.87		%
Nonperforming loans ratio(3)	0.59		%	0.66		%	0.36		%
Nonperforming assets ratio(4)	0.47		%	0.49		%	0.22		%
Allowance for credit losses ratio(5)	1.26		%	1.27		%	1.25		%

Allowance for credit losses to nonaccrual loans ratio(6)	218.26		%	197.53		%	355.03		%


(1) Net charge-off ratio is calculated as annualized net charge-offs divided by the sum of average loans held for investment, net of unearned income and average loans held for sale, during the period.
(2) Classified loans ratio is calculated as classified loans divided by loans held for investment, net of unearned income, at the end of the period.

(3) Nonperforming loans ratio is calculated as nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.
(4) Nonperforming assets ratio is calculated as nonperforming assets divided by total assets at the end of the period.
(5) Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income, at the end of the period.

(6)Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period.

Compared to the linked quarter, the nonperforming loans and nonperforming assets ratios declined 7 bps and 2 bps, to 0.59% and 0.47%, respectively. Special mention/watch loan balances decreased $6.4 million, or 4%, from the linked quarter, while classified loan balances decreased $14.7 million, or 9%, from the linked quarter due to the proactive management of troubled assets. When compared to the same period of the prior year, the nonperforming loans and nonperforming asset ratios increased 23 bps and 25 bps, respectively. Further, the net charge-off ratio increased 3 bps from the linked quarter and decreased 4 bps from the same period in the prior year.

As of June 30, 2024, the allowance for credit losses was $53.9 million and the allowance for credit losses ratio was 1.26%, compared with $55.9 million and 1.27% at March 31, 2024. Credit loss expense of $1.3 million in the second quarter of 2024 reflected an additional reserve of $0.8 million on unfunded loan commitments, coupled with an additional reserve taken to support organic loan growth. Credit loss expense in the linked quarter reflected $3.2 million of day 1 credit loss expense related to the DNVB acquisition, as well as additional reserve taken to support organic loan growth.


Nonperforming Loans Roll Forward	Nonaccrual		90+ Days Past Due & Still Accruing		Total
(Dollars in thousands)
Balance at March 31, 2024	$	28,300	$	967	$	29,267
Loans placed on nonaccrual or 90+ days past due & still accruing	964		446		1,410

Proceeds related to repayment or sale	(1,856)		(1)		(1,857)
Loans returned to accrual status or no longer past due	(25)		(596)		(621)
Charge-offs	(508)		(158)		(666)
Transfers to foreclosed assets	(2,180)		—		(2,180)

Transfer to nonaccrual	—		(225)		(225)
Balance at June 30, 2024	$	24,695	$	433	$	25,128

CONFERENCE CALL DETAILS

The Company will host a conference call for investors at 11:00 a.m. CT on Friday, July 26, 2024. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login?show=25afc13e&confId=68332. After pre-registering for this event you will receive your access details via email. On the day of the call, you are also able to dial 1-833-470-1428 using an access code of 162387 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until October 24, 2024 by calling 1-866-813-9403 and using the replay access code of 323537. A transcript of the call will also be available on the Company’s web site (www.midwestonefinancial.com) within three business days of the call.

ABOUT MIDWESTONE FINANCIAL GROUP, INC.

MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. MidWestOne is the parent company of MidWestOne Bank, which operates banking offices in Iowa, Minnesota, Wisconsin, and Colorado. MidWestOne provides electronic delivery of financial services through its website, MidWestOne.bank. MidWestOne Financial Group, Inc. trades on the Nasdaq Global Select Market under the symbol “MOFG”.

Cautionary Note Regarding Forward-Looking Statements

This release contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “goals,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law.

Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the risks of mergers or branch sales (including the recent sale of our Florida banking operations and the acquisition of DNVB), including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; (2) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (3) the effects of sustained high interest rates, including on our net income and the value of our securities portfolio; (4) changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; (5) fluctuations in the value of our investment securities; (6) governmental monetary and fiscal policies; (7) changes in and uncertainty related to benchmark interest rates used to price loans and deposits; (8) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, and any changes in response to the recent failures of other banks; (9) the ability to attract and retain key executives and employees experienced in banking and financial services; (10) the sufficiency of the allowance for credit losses to absorb the amount of actual losses inherent in our existing loan portfolio; (11) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (12) credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio; (13) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (14) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (15) volatility of rate-sensitive deposits; (16) operational risks, including data processing system failures or fraud; (17) asset/liability matching risks and liquidity risks; (18) the costs, effects and outcomes of existing or future litigation; (19) changes in general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (20) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (21) war or terrorist activities, including the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (22) the occurrence of fraudulent activity, breaches, or failures of our or our third-party vendors' information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; (23) the imposition of tariffs or other domestic or international governmental policies impacting the value of the agricultural or other products of our borrowers; (24) potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election; (25) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits; (26) the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in recent bank failures; and (27) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company.

MIDWESTONE FINANCIAL GROUP, INC.

FIVE QUARTER CONSOLIDATED BALANCE SHEETS


	June 30,		March 31,		December 31,		September 30,		June 30,
(In thousands)	2024		2024		2023		2023		2023
ASSETS
Cash and due from banks	$	66,228	$	68,430	$	76,237	$	71,015	$	75,955
Interest earning deposits in banks	35,340		29,328		5,479		3,773		68,603
Federal funds sold	—		4		11		—		—
Total cash and cash equivalents	101,568		97,762		81,727		74,788		144,558
Debt securities available for sale at fair value	771,034		797,230		795,134		872,770		903,520
Held to maturity securities at amortized cost	1,053,080		1,064,939		1,075,190		1,085,751		1,099,569
Total securities	1,824,114		1,862,169		1,870,324		1,958,521		2,003,089
Loans held for sale	2,850		2,329		1,045		2,528		2,821
Gross loans held for investment	4,304,619		4,433,258		4,138,352		4,078,060		4,031,377
Unearned income, net	(17,387)		(18,612)		(11,405)		(12,091)		(12,728)
Loans held for investment, net of unearned income	4,287,232		4,414,646		4,126,947		4,065,969		4,018,649
Allowance for credit losses	(53,900)		(55,900)		(51,500)		(51,600)		(50,400)
Total loans held for investment, net	4,233,332		4,358,746		4,075,447		4,014,369		3,968,249
Premises and equipment, net	91,793		95,986		85,742		85,589		85,831
Goodwill	69,388		71,118		62,477		62,477		62,477
Other intangible assets, net	27,939		29,531		24,069		25,510		26,969
Foreclosed assets, net	6,053		3,897		3,929		—		—
Other assets	224,621		226,477		222,780		244,036		227,495
Total assets	$	6,581,658	$	6,748,015	$	6,427,540	$	6,467,818	$	6,521,489
LIABILITIES
Noninterest bearing deposits	$	882,472	$	920,764	$	897,053	$	924,213	$	897,923
Interest bearing deposits	4,529,947		4,664,472		4,498,620		4,439,111		4,547,524
Total deposits	5,412,419		5,585,236		5,395,673		5,363,324		5,445,447





Short-term borrowings	414,684		422,988		300,264		373,956		362,054





Long-term debt	114,839		122,066		123,296		124,526		125,752
Other liabilities	96,430		89,685		83,929		100,601		86,895
Total liabilities	6,038,372		6,219,975		5,903,162		5,962,407		6,020,148
SHAREHOLDERS' EQUITY

Common stock	16,581		16,581		16,581		16,581		16,581
Additional paid-in capital	300,831		300,845		302,157		301,889		301,424
Retained earnings	306,030		294,066		294,784		295,862		290,548
Treasury stock	(22,021)		(22,648)		(24,245)		(24,315)		(24,508)
Accumulated other comprehensive loss	(58,135)		(60,804)		(64,899)		(84,606)		(82,704)
Total shareholders' equity	543,286		528,040		524,378		505,411		501,341
Total liabilities and shareholders' equity	$	6,581,658	$	6,748,015	$	6,427,540	$	6,467,818	$	6,521,489

MIDWESTONE FINANCIAL GROUP, INC.

FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME


	Three Months Ended										Six Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,		June 30,
(In thousands, except per share data)	2024		2024		2023		2023		2023		2024		2023
Interest income
Loans, including fees	$	61,643	$	57,947	$	54,093	$	51,870	$	49,726	$	119,590	$	96,216
Taxable investment securities	9,228		9,460		9,274		9,526		9,734		18,688		20,178
Tax-exempt investment securities	1,663		1,710		1,789		1,802		1,822		3,373		3,949
Other	242		418		230		374		68		660		312
Total interest income	72,776		69,535		65,386		63,572		61,350		142,311		120,655
Interest expense
Deposits	28,942		27,726		27,200		23,128		20,117		56,668		35,436
Short-term borrowings	5,409		4,975		3,496		3,719		2,118		10,384		3,904
Long-term debt	2,078		2,103		2,131		2,150		2,153		4,181		4,277
Total interest expense	36,429		34,804		32,827		28,997		24,388		71,233		43,617
Net interest income	36,347		34,731		32,559		34,575		36,962		71,078		77,038
Credit loss expense	1,267		4,689		1,768		1,551		1,597		5,956		2,530
Net interest income after credit loss expense	35,080		30,042		30,791		33,024		35,365		65,122		74,508
Noninterest income
Investment services and trust activities	3,504		3,503		3,193		3,004		3,119		7,007		6,052
Service charges and fees	2,156		2,144		2,148		2,146		2,047		4,300		4,055
Card revenue	1,907		1,943		1,802		1,817		1,847		3,850		3,595
Loan revenue	1,525		856		909		1,462		909		2,381		2,329
Bank-owned life insurance	668		660		656		626		616		1,328		1,218

Investment securities gains (losses), net	33		36		(5,696)		79		(2)		69		(13,172)
Other	11,761		608		850		727		210		12,369		623
Total noninterest income	21,554		9,750		3,862		9,861		8,746		31,304		4,700
Noninterest expense
Compensation and employee benefits	20,985		20,930		17,859		18,558		20,386		41,915		39,993
Occupancy expense of premises, net	2,435		2,813		2,309		2,405		2,574		5,248		5,320
Equipment	2,530		2,600		2,466		2,123		2,435		5,130		4,606
Legal and professional	2,253		2,059		2,269		1,678		1,682		4,312		3,418
Data processing	1,645		1,360		1,411		1,504		1,521		3,005		2,884
Marketing	636		598		700		782		1,142		1,234		2,128
Amortization of intangibles	1,593		1,637		1,441		1,460		1,594		3,230		3,346
FDIC insurance	1,051		942		900		783		862		1,993		1,611
Communications	191		196		183		206		260		387		521
Foreclosed assets, net	138		358		45		2		(6)		496		(34)

Other	2,304		2,072		2,548		2,043		2,469		4,376		4,445
Total noninterest expense	35,761		35,565		32,131		31,544		34,919		71,326		68,238
Income before income tax expense	20,873		4,227		2,522		11,341		9,192		25,100		10,970
Income tax expense (benefit)	5,054		958		(208)		2,203		1,598		6,012		1,979
Net income	$	15,819	$	3,269	$	2,730	$	9,138	$	7,594	$	19,088	$	8,991

Earnings per common share
Basic	$	1.00	$	0.21	$	0.17	$	0.58	$	0.48	$	1.21	$	0.57
Diluted	$	1.00	$	0.21	$	0.17	$	0.58	$	0.48	$	1.21	$	0.57
Weighted average basic common shares outstanding	15,763		15,723		15,693		15,689		15,680		15,743		15,665
Weighted average diluted common shares outstanding	15,781		15,774		15,756		15,711		15,689		15,775		15,688
Dividends paid per common share	$	0.2425	$	0.2425	$	0.2425	$	0.2425	$	0.2425	$	0.4850	$	0.4850

MIDWESTONE FINANCIAL GROUP, INC.

FINANCIAL STATISTICS


	As of or for the Three Months Ended									As of or for the Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
(Dollars in thousands, except per share amounts)	2024			2024			2023			2024			2023
Earnings:
Net interest income	$	36,347		$	34,731		$	36,962		$	71,078		$	77,038
Noninterest income	21,554			9,750			8,746			31,304			4,700
Total revenue, net of interest expense	57,901			44,481			45,708			102,382			81,738
Credit loss expense	1,267			4,689			1,597			5,956			2,530
Noninterest expense	35,761			35,565			34,919			71,326			68,238
Income before income tax expense	20,873			4,227			9,192			25,100			10,970
Income tax expense	5,054			958			1,598			6,012			1,979
Net income	$	15,819		$	3,269		$	7,594		$	19,088		$	8,991
Per Share Data:
Diluted earnings	$	1.00		$	0.21		$	0.48		$	1.21		$	0.57
Book value	34.44			33.53			31.96			34.44			31.96
Tangible book value(1)	28.27			27.14			26.26			28.27			26.26
Ending Balance Sheet:
Total assets	$	6,581,658		$	6,748,015		$	6,521,489		$	6,581,658		$	6,521,489
Loans held for investment, net of unearned income	4,287,232			4,414,646			4,018,649			4,287,232			4,018,649


Total securities	1,824,114			1,862,169			2,003,089			1,824,114			2,003,089
Total deposits	5,412,419			5,585,236			5,445,447			5,412,419			5,445,447
Short-term borrowings	414,684			422,988			362,054			414,684			362,054
Long-term debt	114,839			122,066			125,752			114,839			125,752
Total shareholders' equity	543,286			528,040			501,341			543,286			501,341
Average Balance Sheet:
Average total assets	$	6,713,573		$	6,635,379		$	6,465,810		$	6,674,476		$	6,494,777
Average total loans	4,419,697			4,298,216			4,003,717			4,358,957			3,935,791
Average total deposits	5,514,924			5,481,114			5,454,517			5,498,020			5,500,350
Financial Ratios:
Return on average assets	0.95		%	0.20		%	0.47		%	0.58		%	0.28		%
Return on average equity	11.91		%	2.49		%	6.03		%	7.23		%	3.61		%
Return on average tangible equity(1)	15.74		%	4.18		%	8.50		%	9.98		%	5.65		%
Efficiency ratio(1)	56.29		%	71.28		%	71.13		%	62.83		%	66.56		%
Net interest margin, tax equivalent(1)	2.41		%	2.33		%	2.52		%	2.37		%	2.63		%
Loans to deposits ratio	79.21		%	79.04		%	73.80		%	79.21		%	73.80		%


Common equity ratio	8.25		%	7.83		%	7.69		%	8.25		%	7.69		%
Tangible common equity ratio(1)	6.88		%	6.43		%	6.40		%	6.88		%	6.40		%
Credit Risk Profile:
Total nonperforming loans	$	25,128		$	29,267		$	14,448		$	25,128		$	14,448
Nonperforming loans ratio	0.59		%	0.66		%	0.36		%	0.59		%	0.36		%
Total nonperforming assets	$	31,181		$	33,164		$	14,448		$	31,181		$	14,448
Nonperforming assets ratio	0.47		%	0.49		%	0.22		%	0.47		%	0.22		%

Net charge-offs	$	524		$	189		$	897		$	713		$	1,230
Net charge-off ratio	0.05		%	0.02		%	0.09		%	0.03		%	0.06		%
Allowance for credit losses	$	53,900		$	55,900		$	50,400		$	53,900		$	50,400
Allowance for credit losses ratio	1.26		%	1.27		%	1.25		%	1.26		%	1.25		%

Allowance for credit losses to nonaccrual ratio	218.26		%	197.53		%	355.03		%	218.26		%	355.03		%





(1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

MIDWESTONE FINANCIAL GROUP, INC.

AVERAGE BALANCE SHEET AND YIELD ANALYSIS


	Three Months Ended
	June 30, 2024						March 31, 2024						June 30, 2023
(Dollars in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Cost		Average Balance		Interest Income/ Expense		Average Yield/ Cost		Average Balance		Interest Income/ Expense		Average Yield/ Cost
ASSETS
Loans, including fees (1)(2)(3)	$	4,419,697	$	62,581	5.69	%	$	4,298,216	$	58,867	5.51	%	$	4,003,717	$	50,439	5.05	%
Taxable investment securities	1,520,253		9,228		2.44	%	1,557,603		9,460		2.44	%	1,698,003		9,734		2.30	%
Tax-exempt investment securities (2)(4)	322,092		2,040		2.55	%	328,736		2,097		2.57	%	345,934		2,253		2.61	%
Total securities held for investment(2)	1,842,345		11,268		2.46	%	1,886,339		11,557		2.46	%	2,043,937		11,987		2.35	%
Other	20,452		242		4.76	%	30,605		418		5.49	%	9,078		68		3.00	%
Total interest earning assets(2)	$	6,282,494	$	74,091	4.74	%	$	6,215,160	$	70,842	4.58	%	$	6,056,732	$	62,494	4.14	%
Other assets	431,079						420,219						409,078
Total assets	$	6,713,573					$	6,635,379					$	6,465,810
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest checking deposits	$	1,297,356	$	3,145	0.97	%	$	1,301,470	$	2,890	0.89	%	$	1,420,741	$	1,971	0.56	%
Money market deposits	1,072,688		7,821		2.93	%	1,102,543		8,065		2.94	%	999,436		5,299		2.13	%
Savings deposits	738,773		2,673		1.46	%	694,143		2,047		1.19	%	603,905		288		0.19	%
Time deposits	1,470,956		15,303		4.18	%	1,446,981		14,724		4.09	%	1,490,332		12,559		3.38	%
Total interest bearing deposits	4,579,773		28,942		2.54	%	4,545,137		27,726		2.45	%	4,514,414		20,117		1.79	%
Securities sold under agreements to repurchase	5,300		10		0.76	%	5,330		11		0.83	%	159,583		423		1.06	%

Other short-term borrowings	442,546		5,399		4.91	%	409,525		4,964		4.88	%	132,495		1,695		5.13	%
Total short-term borrowings	447,846		5,409		4.86	%	414,855		4,975		4.82	%	292,078		2,118		2.91	%
Long-term debt	120,256		2,078		6.95	%	123,266		2,103		6.86	%	135,329		2,153		6.38	%
Total borrowed funds	568,102		7,487		5.30	%	538,121		7,078		5.29	%	427,407		4,271		4.01	%
Total interest bearing liabilities	$	5,147,875	$	36,429	2.85	%	$	5,083,258	$	34,804	2.75	%	$	4,941,821	$	24,388	1.98	%
Noninterest bearing deposits	935,151						935,977						940,103
Other liabilities	96,553						88,611						78,898
Shareholders’ equity	533,994						527,533						504,988
Total liabilities and shareholders’ equity	$	6,713,573					$	6,635,379					$	6,465,810
Net interest income(2)			$	37,662					$	36,038					$	38,106
Net interest spread(2)					1.89	%					1.83	%					2.16	%
Net interest margin(2)					2.41	%					2.33	%					2.52	%

Total deposits(5)	$	5,514,924	$	28,942	2.11	%	$	5,481,114	$	27,726	2.03	%	$	5,454,517	$	20,117	1.48	%
Cost of funds(6)					2.41	%					2.33	%					1.66	%

(1) Average balance includes nonaccrual loans.

(2) Tax equivalent. The federal statutory tax rate utilized was 21%.

(3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $337 thousand, $237 thousand, and $79 thousand for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively. Loan purchase discount accretion was $1.3 million, $1.2 million, and $1.0 million for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively. Tax equivalent adjustments were $938 thousand, $920 thousand, and $713 thousand for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively. The federal statutory tax rate utilized was 21%.

(4) Interest income includes tax equivalent adjustments of $377 thousand, $387 thousand, and $431 thousand for the three months ended June 30, 2024, March 31, 2024, and June 30, 2023, respectively. The federal statutory tax rate utilized was 21%.

(5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.

(6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.

MIDWESTONE FINANCIAL GROUP, INC.

AVERAGE BALANCE SHEET AND YIELD ANALYSIS


	Six Months Ended
	June 30, 2024						June 30, 2023
(Dollars in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Cost		Average Balance		Interest Income/ Expense		Average Yield/ Cost
ASSETS
Loans, including fees (1)(2)(3)	$	4,358,957	$	121,448	5.60	%	$	3,935,791	$	97,645	5.00	%
Taxable investment securities	1,538,928		18,688		2.44	%	1,754,382		20,178		2.32	%
Tax-exempt investment securities (2)(4)	325,414		4,137		2.56	%	371,381		4,902		2.66	%
Total securities held for investment(2)	1,864,342		22,825		2.46	%	2,125,763		25,080		2.38	%
Other	25,529		660		5.20	%	16,919		312		3.72	%
Total interest earning assets(2)	$	6,248,828	$	144,933	4.66	%	$	6,078,473	$	123,037	4.08	%
Other assets	425,648						416,304
Total assets	$	6,674,476					$	6,494,777
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest checking deposits	$	1,299,413	$	6,035	0.93	%	$	1,468,030	$	3,820	0.52	%
Money market deposits	1,087,616		15,886		2.94	%	965,180		8,568		1.79	%
Savings deposits	716,458		4,720		1.32	%	628,338		560		0.18	%
Time deposits	1,458,969		30,027		4.14	%	1,454,210		22,488		3.12	%
Total interest bearing deposits	4,562,456		56,668		2.50	%	4,515,758		35,436		1.58	%
Securities sold under agreements to repurchase	5,315		21		0.79	%	152,734		873		1.15	%

Other short-term borrowings	426,036		10,363		4.89	%	121,959		3,031		5.01	%
Total short-term borrowings	431,351		10,384		4.84	%	274,693		3,904		2.87	%
Long-term debt	121,761		4,181		6.91	%	137,258		4,277		6.28	%
Total borrowed funds	553,112		14,565		5.30	%	411,951		8,181		4.00	%
Total interest bearing liabilities	$	5,115,568	$	71,233	2.80	%	$	4,927,709	$	43,617	1.78	%
Noninterest bearing deposits	935,564						984,592
Other liabilities	92,581						80,690
Shareholders’ equity	530,763						501,786
Total liabilities and shareholders’ equity	$	6,674,476					$	6,494,777
Net interest income(2)			$	73,700					$	79,420
Net interest spread(2)					1.86	%					2.30	%
Net interest margin(2)					2.37	%					2.63	%

Total deposits(5)	$	5,498,020	$	56,668	2.07	%	$	5,500,350	$	35,436	1.30	%
Cost of funds(6)					2.37	%					1.49	%

(1) Average balance includes nonaccrual loans.

(2) Tax equivalent. The federal statutory tax rate utilized was 21%.

(3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $574 thousand and $174 thousand for the six months ended June 30, 2024 and June 30, 2023, respectively. Loan purchase discount accretion was $2.4 million and $2.2 million for the six months ended June 30, 2024 and June 30, 2023, respectively. Tax equivalent adjustments were $1.9 million and $1.4 million for the six months ended June 30, 2024 and June 30, 2023, respectively. The federal statutory tax rate utilized was 21%.

(4) Interest income includes tax equivalent adjustments of $0.8 million and $1.0 million for the six months ended June 30, 2024 and June 30, 2023, respectively. The federal statutory tax rate utilized was 21%.

(6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.

Non-GAAP Measures

This earnings release contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, return on average tangible equity, net interest margin (tax equivalent), core net interest margin, loan yield (tax equivalent), core yield on loans, and efficiency ratio. Management believes these measures provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP measure.


Tangible Common Equity/Tangible Book Value
per Share/Tangible Common Equity Ratio	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands, except per share data)	2024			2024			2023			2023			2023
Total shareholders’ equity	$	543,286		$	528,040		$	524,378		$	505,411		$	501,341
Intangible assets, net	(97,327)			(100,649)			(86,546)			(87,987)			(89,446)
Tangible common equity	$	445,959		$	427,391		$	437,832		$	417,424		$	411,895

Total assets	$	6,581,658		$	6,748,015		$	6,427,540		$	6,467,818		$	6,521,489
Intangible assets, net	(97,327)			(100,649)			(86,546)			(87,987)			(89,446)
Tangible assets	$	6,484,331		$	6,647,366		$	6,340,994		$	6,379,831		$	6,432,043

Book value per share	$	34.44		$	33.53		$	33.41		$	32.21		$	31.96
Tangible book value per share(1)	$	28.27		$	27.14		$	27.90		$	26.60		$	26.26
Shares outstanding	15,773,468			15,750,471			15,694,306			15,691,738			15,685,123

Common equity ratio	8.25		%	7.83		%	8.16		%	7.81		%	7.69		%
Tangible common equity ratio(2)	6.88		%	6.43		%	6.90		%	6.54		%	6.40		%

(1) Tangible common equity divided by shares outstanding.

(2) Tangible common equity divided by tangible assets.


	Three Months Ended									Six Months Ended
Return on Average Tangible Equity	June 30,			March 31,			June 30,			June 30,			June 30,
(Dollars in thousands)	2024			2024			2023			2024			2023
Net income	$	15,819		$	3,269		$	7,594		$	19,088		$	8,991
Intangible amortization, net of tax(1)	1,195			1,228			1,196			2,423			2,510

Tangible net income	$	17,014		$	4,497		$	8,790		$	21,511		$	11,501

Average shareholders’ equity	$	533,994		$	527,533		$	504,988		$	530,763		$	501,786
Average intangible assets, net	(99,309)			(95,296)			(90,258)			(97,302)			(91,125)
Average tangible equity	$	434,685		$	432,237		$	414,730		$	433,461		$	410,661

Return on average equity	11.91		%	2.49		%	6.03		%	7.23		%	3.61		%
Return on average tangible equity(2)	15.74		%	4.18		%	8.50		%	9.98		%	5.65		%

(1) The combined income tax rate utilized was 25%.

(2) Annualized tangible net income divided by average tangible equity.


Net Interest Margin, Tax Equivalent/ Core Net Interest Margin	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
(Dollars in thousands)	2024			2024			2023			2024			2023
Net interest income	$	36,347		$	34,731		$	36,962		$	71,078		$	77,038
Tax equivalent adjustments:
Loans(1)	938			920			713			1,858			1,429
Securities(1)	377			387			431			764			953
Net interest income, tax equivalent	$	37,662		$	36,038		$	38,106		$	73,700		$	79,420
Loan purchase discount accretion	(1,261)			(1,152)			(984)			(2,413)			(2,173)
Core net interest income	$	36,401		$	34,886		$	37,122		$	71,287		$	77,247

Net interest margin	2.33		%	2.25		%	2.45		%	2.29		%	2.56		%
Net interest margin, tax equivalent(2)	2.41		%	2.33		%	2.52		%	2.37		%	2.63		%
Core net interest margin(3)	2.33		%	2.26		%	2.46		%	2.29		%	2.56		%
Average interest earning assets	$	6,282,494		$	6,215,160		$	6,056,732		$	6,248,828		$	6,078,473

(1) The federal statutory tax rate utilized was 21%.

(2) Annualized tax equivalent net interest income divided by average interest earning assets.

(3) Annualized core net interest income divided by average interest earning assets.


	Three Months Ended									Six Months Ended
Loan Yield, Tax Equivalent / Core Yield on Loans	June 30,			March 31,			June 30,			June 30,			June 30,
(Dollars in thousands)	2024			2024			2023			2024			2023
Loan interest income, including fees	$	61,643		$	57,947		$	49,726		$	119,590		$	96,216
Tax equivalent adjustment(1)	938			920			713			1,858			1,429
Tax equivalent loan interest income	$	62,581		$	58,867		$	50,439		$	121,448		$	97,645
Loan purchase discount accretion	(1,261)			(1,152)			(984)			(2,413)			(2,173)
Core loan interest income	$	61,320		$	57,715		$	49,455		$	119,035		$	95,472

Yield on loans	5.61		%	5.42		%	4.98		%	5.52		%	4.93		%
Yield on loans, tax equivalent(2)	5.69		%	5.51		%	5.05		%	5.60		%	5.00		%
Core yield on loans(3)	5.58		%	5.40		%	4.95		%	5.49		%	4.89		%
Average loans	$	4,419,697		$	4,298,216		$	4,003,717		$	4,358,957		$	3,935,791

(1) The federal statutory tax rate utilized was 21%.

(2) Annualized tax equivalent loan interest income divided by average loans.

(3) Annualized core loan interest income divided by average loans.


	Three Months Ended									Six Months Ended
Efficiency Ratio	June 30,			March 31,			June 30,			June 30,			June 30,
(Dollars in thousands)	2024			2024			2023			2024			2023
Total noninterest expense	$	35,761		$	35,565		$	34,919		$	71,326		$	68,238
Amortization of intangibles	(1,593)			(1,637)			(1,594)			(3,230)			(3,346)
Merger-related expenses	(854)			(1,314)			—			(2,168)			(136)

Noninterest expense used for efficiency ratio	$	33,314		$	32,614		$	33,325		$	65,928		$	64,756

Net interest income, tax equivalent(1)	$	37,662		$	36,038		$	38,106		$	73,700		$	79,420
Plus: Noninterest income	21,554			9,750			8,746			31,304			4,700
Less: Investment securities (losses) gains, net	33			36			(2)			69			(13,172)
Net revenues used for efficiency ratio	$	59,183		$	45,752		$	46,854		$	104,935		$	97,292

Efficiency ratio (2)	56.29		%	71.28		%	71.13		%	62.83		%	66.56		%

(1) The federal statutory tax rate utilized was 21%.

(2) Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities gains.


Contact:
	Charles N. Reeves	Barry S. Ray
	Chief Executive Officer	Chief Financial Officer
	319.356.5800	319.356.5800

Second Quarter 2024 Earnings Conference Call July 26, 2024

2 Forward Looking Statements & Non-GAAP Measures This presentation contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “goals,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the risks of mergers or branch sales (including the recent sale of our Florida banking operations and the acquisition of Denver Bankshares, Inc.), including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; (2) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (3) the effects of sustained high interest rates, including on our net income and the value of our securities portfolio; (4) changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; (5) fluctuations in the value of our investment securities; (6) governmental monetary and fiscal policies; (7) changes in and uncertainty related to benchmark interest rates used to price loans and deposits; (8) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, and any changes in response to the recent failures of other banks; (9) the ability to attract and retain key executives and employees experienced in banking and financial services; (10) the sufficiency of the allowance for credit losses to absorb the amount of actual losses inherent in our existing loan portfolio; (11) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (12) credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio; (13) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (14) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (15) volatility of rate-sensitive deposits; (16) operational risks, including data processing system failures or fraud; (17) asset/liability matching risks and liquidity risks; (18) the costs, effects and outcomes of existing or future litigation; (19) changes in general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (20) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (21) war or terrorist activities, including the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (22) the occurrence of fraudulent activity, breaches, or failures of our or our third-party vendors' information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; (23) the imposition of tariffs or other domestic or international governmental policies impacting the value of the agricultural or other products of our borrowers; (24) potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election; (25) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits; (26) the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in recent bank failures; and (27) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company. Non-GAAP Measures This presentation contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, loan yield, tax equivalent, efficiency ratio, pre-tax, pre-provision earnings, return on average tangible equity, and net interest margin, tax equivalent. Management believes these measures provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. A reconciliation of each non-GAAP measure to the most comparable GAAP measure is included, as necessary, in the Non-GAAP Financial Measures section.

3 Financial Highlights Total assets $ 6,581.7 (2.47) % 0.92 % Total loans held for investment, net 4,287.2 (2.89) 6.68 Total deposits 5,412.4 (3.09) (0.61) Balance Sheet Equity to assets ratio 8.25 % 42 bps 56 bps Tangible common equity ratio (non-GAAP) 6.88 45 48 CET1 risk-based capital ratio 9.56 58 20 Total risk-based capital ratio 12.62 65 36 Loans to deposits ratio 79.21 % 17 541 Capital and Liquidity Net interest margin, tax equivalent (non-GAAP) 2.41 % 8 bps (11) bps Cost of total deposits 2.11 8 63 Return on average assets 0.95 75 48 Return on average tangible equity (non-GAAP) 15.74 1,156 724 Efficiency ratio (non-GAAP) 56.29 (1,499) (1,484) Profitability Nonperforming loans ratio 0.59 % (7) bps 23 bps Nonperforming assets ratio 0.47 (2) 25 Net charge-off ratio 0.05 3 (4) Allowance for credit losses ratio 1.26 (1) 1 Credit Risk Profile 2Q24 Financial Highlights – See the section "Non-GAAP Financial measures." – Note: Financial metrics as of or for the quarter ended June 30, 2024. Change vs. Dollars in millions 2Q24 1Q24 2Q23

4 Denver Bankshares, Inc. Acquisition and Florida Banking Operations Divestiture *The Denver banking offices, loans and deposits were as of the acquisition date 1/31/24 and the Florida banking offices, loans and deposits were as of the sale date 6/7/24. Dollars are reported in millions. **Banking office information is as of 6/30/24. Dollars are reported in millions. Note: Core market information excludes brokered time deposits of $196.0 million. Merger and Divestiture Update • On January 31, 2024, MOFG acquired Denver Bankshares, Inc., a bank holding company for the Bank of Denver. As consideration for the merger, we paid cash in the amount of $32.6 million. • During the first quarter of 2024, the core banking system conversion was completed and we consolidated the operations of a MidWestOne banking office into the former Bank of Denver banking office. • On June 7, 2024, MidWestOne Bank, a wholly-owned subsidiary of MOFG, completed the sale of its Florida banking operations for a 7.5% deposit premium. MOFG Core Markets** State Banking Offices Total Gross Loans in Market Total Deposits in Market Iowa Community 22 $ 868.0 $ 1,759.0 Iowa Metro 17 1,474.2 1,863.8 Twin Cities 15 1,279.5 1,205.9 Denver 2 683.0 387.6 Acquisitions and Divestitures* State Banking Offices Loans Deposits Denver 2 $ 207.1 $ 224.2 Florida 2 $ 163.6 $ 133.3

5 MOFG's Five Strategic Pillars to Deliver Improved Results Exceptional Customer and Employee Engagement 1 Enhance MOFG's award winning culture with a continued focus on performance and financial results 2 Protect and enhance MOFG's dominant community bank franchise through product expansion 3 Continue to hire exceptional relationship bankers and wealth management professionals 4 Develop specialty commercial banking verticals by continuing to attract experienced professionals 5 Continue to identify and execute on opportunities for efficiency gains and cost reduction Strong Core Local Banking Model Sophisticated Commercial Banking and Wealth Management Specialty Business Lines Improving our Efficiency and Operations

6 Strategic Plan Updates Completed the sale of our Florida banking operations on June 7, 2024 for a 7.5% deposit premium. Recruited a new EVP, Head of Wealth Management, a new EVP, Chief Information Officer, a new SVP, Chief Marketing Officer, and a new Cedar Rapids Commercial Banking leader in the first and second quarters of 2024. Completed the acquisition of DNVB on January 31, 2024, the conversion of core banking system, and the consolidation of the legacy MidWestOne Denver banking office into a former Bank of Denver banking office. Annualized C&I and CRE loan growth was 7% and 3%, respectively, for the second quarter of 2024 (excluding the loans sold in the Florida divestiture). Continued momentum in Wealth Management, with year-to-date revenue growth of 16% compared to the prior year period.

7 Commercial Loan Portfolio Commercial and Industrial, 32% Agricultural, 3% Farmland, 5% Construction & Development, 10% Multifamily, 12% CRE-Other, 38% Commercial Loan Portfolio Mix - June 30, 2024 Commercial Loan Portfolio of $3.5 billion Commercial Loan Growth in Targeted Regions $ in Millions $834.5 $1,077.9 $926.4 $1,182.3 Iowa Metro Twin Cities 06/30/22 06/30/23 06/30/24 $310.5 $660.1 Denver 06/30/22 06/30/23 06/30/24 13% CAGR 14% CAGR

8 Credit $ m illi on s Nonperforming Assets $14.4 $29.0 $30.3 $33.2 $31.2 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 $ m illi on s Net Charge-Offs $0.9 $0.5 $2.1 $0.2 $0.5 2Q23 3Q23 4Q23 1Q24 2Q24 Credit Quality Measures $ millions 2Q23 3Q23 4Q23 1Q24 2Q24 Nonperforming assets ratio 0.22 % 0.45 % 0.47 % 0.49 % 0.47 % Net charge-off ratio 0.09 % 0.04 % 0.20 % 0.02 % 0.05 % Loans greater than 30 days past due and accruing $6.2 $6.4 $10.8 $8.8 $9.4 Allowance for credit losses ratio 1.25 % 1.27 % 1.25 % 1.27 % 1.26 % (1) Nonperforming assets in the third quarter of 2023 increased primarily due to a single commercial relationship. (1)

9 Commercial Real Estate 3.7% 96.3% NOO CRE Office All Other Loans Non-Owner Occupied CRE Office June 30, 2024 $ millions 2Q24 1Q24 Construction & Development $ 351.6 $ 403.6 Farmland 183.6 184.1 Multifamily 430.1 409.5 CRE Other: NOO CRE Office 157.1 166.1 OO CRE Office 84.6 91.3 Industrial and Warehouse 407.3 429.1 Retail 262.0 285.0 Hotel 112.8 126.2 Other 324.7 342.9 Total Commercial Real Estate $ 2,313.8 $ 2,437.8 Commercial Real Estate Portfolio(2) June 30, 2024 Portfolio Highlights June 30, 2024 $ millions Average NOO CRE Office outstanding principal $ 1.4 % of Total Capital Commercial Real Estate Concentration: 2Q24 1Q24 Regulatory Threshold Construction, land development and other land 52 % 60 % 100 % Total CRE loans(1) 237 % 251 % 300 % (1)Total CRE loans includes construction, land development and other land, in addition to multifamily and NOO CRE. (2) Represents the amortized cost of the CRE portfolio.

10 Focusing on Growth in Wealth Management $2.44 $2.74 $2.73 $3.01 $3.11 2020 2021 2022 2023 2Q24 $— $1.00 $2.00 $3.00 $4.00 Investment Services and Private Wealth Revenue • Asset amounts presented are in billions of dollars • Revenue amounts presented are in millions of dollars $9.6 $11.7 $11.2 $12.2 $7.0 $3.2 $4.2 $3.9 $3.8 $2.3 $6.4 $7.5 $7.3 $8.4 $4.7 Investment Services Private Wealth 2020 2021 2022 2023 YTD Q2.24 $5.0 $10.0 $15.0 Wealth Management Assets Under Administration Private Banking • Right size book of business with consistent eligibility • Launched new concierge support • Building out product set • Added a new Senior Private Banker in Des Moines during 2024 Private Wealth • Enhance planning with a single platform across Private Wealth and Investment Services • New investment solutions and two new equity managers expected by Fall of 2024 • Increase focus on thought leadership • Enhance fee opportunities with fiduciary services and proprietary investments Investment Services • Adding advisors in Twin Cities & Denver • Focus on building recurring revenue through fee-based business

11 Financial Performance

12 Balance Sheet 2Q24 vs. 1Q24 2Q24 vs. 2Q23 Period end balances, $ millions 2Q24 $ Change % Change $ Change % Change Loans $4,287.2 $(127.4) (3) % $268.6 7 % Investment securities $1,824.1 $(38.1) (2) % $(179.0) (9) % Interest earning deposits in banks $35.3 $6.0 20 % $(33.3) (49) % Deposits $5,412.4 $(172.8) (3) % $(33.0) (1) % Borrowed funds $529.5 $(15.6) (3) % $41.7 9 % Shareholders' equity $543.3 $15.3 3 % $42.0 8 % 2Q24 2Q24 Period end 2Q24 1Q24 vs. 1Q24 2Q23 vs. 2Q23 Tangible book value per share (non-GAAP) $28.27 $27.14 4 % $26.26 8 % Common equity Tier 1 capital ratio 9.6 % 9.0 % 60 bps 9.4 % 20 bps AOCI $(58.1) $(60.8) 4 % $(82.7) 30 % Return on average tangible equity (non-GAAP) 15.74 % 4.18 % 1,156 bps 8.50 % 724 bps – See the section "Non-GAAP Financial Measures."

13 Balance Sheet- Average Loans and Deposits – IB Deposits represent interest bearing deposits and NIB Deposits represent noninterest bearing deposits. The disaggregation of the average deposits may not foot due to rounding. – Loan yield, tax equivalent is a non-GAAP measure. See the Section "Non-GAAP Financial Measures." Av er ag e ba la nc es , $ bi lli on s Average Deposits $5.45 $5.48 $5.51 $4.51 $4.55 $4.58 $0.94 $0.94 $0.94 1.79% 2.45% 2.54% IB Deposits NIB Deposits Cost of IB Deposits 2Q23 1Q24 2Q24 Av er ag e ba la nc es , $ bi lli on s Average Loans $4.00 $4.30 $4.42 5.05% 5.51% 5.69% Loans Loan yield, tax equivalent 2Q23 1Q24 2Q24

14 Balance Sheet - Debt Securities Portfolio Municipals, 15% MBS, 1% CLO, 7% CMO, 22% Corporate, 55% 2.35% 2.36% 2.36% 2.46% 2.46% Total Securities Held for Investment (FTE) 2Q23 3Q23 4Q23 1Q24 2Q24 Investment Securities Yield Available for Sale Debt Securities Portfolio Mix June 30, 2024(1) Municipals, 50% MBS, 7% CMO, 43% Held to Maturity Debt Securities Portfolio Mix June 30, 2024(1) • Investment Portfolio Mix: ◦ AFS Securities - $0.8 billion ◦ HTM Securities - $1.1 billion • Investment Portfolio Duration: ◦ AFS Securities - 2.7 ◦ HTM Securities - 6.0 ◦ Total Securities - 4.6 • Allowance for credit losses for investments is $0 Portfolio Composition (1) Percentages may not total 100% due to rounding.

15 Income Statement % Change 2Q24 vs. $ millions 2Q24 1Q24 2Q23 1Q24 2Q23 Net interest income $36.3 $34.7 $37.0 5 % (2) % Noninterest income 21.6 9.8 8.7 120 % 148 % Total revenue 57.9 44.5 45.7 30 % 27 % Noninterest expense 35.8 35.6 34.9 1 % 3 % Pre-tax, pre-provision earnings (non-GAAP) $22.1 $8.9 $10.8 148 % 105 % Credit loss expense $1.3 $4.7 $1.6 (72) % (19) % Income tax expense (benefit) $5.1 $1.0 $1.6 410 % 219 % Net income $15.8 $3.3 $7.6 379 % 108 % 2Q24 2Q24 2Q24 1Q24 2Q23 vs. 1Q24 vs. 2Q23 Net interest margin (non-GAAP) 2.41 % 2.33 % 2.52 % 8 bps (11) bps Efficiency ratio (non-GAAP) 56.29 % 71.28 % 71.13 % 1,499 bps 1,484 bps Diluted EPS $1.00 $0.21 $0.48 376 % 108 % – See the section "Non-GAAP Financial Measures."

16 Non-GAAP Financial Measures

17 Non-GAAP Financial Measures Tangible Common Equity / Tangible Book Value per Share / Tangible Common Equity Ratio June 30, 2023 March 31, 2024 June 30, 2024 dollars in thousands Total shareholders' equity $ 501,341 $ 528,040 $ 543,286 Intangible assets, net (89,446) (100,649) (97,327) Tangible common equity $ 411,895 $ 427,391 $ 445,959 Total assets $ 6,521,489 $ 6,748,015 $ 6,581,658 Intangible assets, net (89,446) (100,649) (97,327) Tangible assets $ 6,432,043 $ 6,647,366 $ 6,484,331 Book value per share $ 31.96 $ 33.53 $ 34.44 Tangible book value per share (1) $ 26.26 $ 27.14 $ 28.27 Shares outstanding 15,685,123 15,750,471 15,773,468 Tangible common equity ratio (2) 6.40 % 6.43 % 6.88 % (1) Tangible common equity divided by shares outstanding. (2) Tangible common equity divided by tangible assets. Loan Yield, Tax Equivalent For the Three Months Ended June 30, 2023 March 31, 2024 June 30, 2024 dollars in thousands Loan interest income, including fees $ 49,726 $ 57,947 $ 61,643 Tax equivalent adjustment (1) 713 920 938 Tax equivalent loan interest income $ 50,439 $ 58,867 $ 62,581 Yield on loans, tax equivalent (2) 5.05 % 5.51 % 5.69 % Average Loans $ 4,003,717 $ 4,298,216 $ 4,419,697 (1) The federal statutory tax rate utilized was 21%. (2) Annualized tax equivalent loan interest income divided by average loans.

18 Non-GAAP Financial Measures Efficiency Ratio For the Three Months Ended June 30, 2023 March 31, 2024 June 30, 2024 dollars in thousands Total noninterest expense $ 34,919 $ 35,565 $ 35,761 Amortization of intangibles (1,594) (1,637) (1,593) Merger-related expenses — (1,314) (854) Noninterest expense used for efficiency ratio $ 33,325 $ 32,614 $ 33,314 Net interest income, tax equivalent (1) $ 38,106 $ 36,038 $ 37,662 Noninterest income 8,746 9,750 21,554 Investment securities (losses) gains, net (2) 36 33 Net revenues used for efficiency ratio $ 46,854 $ 45,752 $ 59,183 Efficiency ratio 71.13 % 71.28 % 56.29 % (1) The federal statutory tax rate utilized was 21%. (2) Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities (losses) gains. Pre-tax / Pre-provision Net Revenue For the Three Months Ended June 30, 2023 March 31, 2024 June 30, 2024 dollars in thousands Net interest income $ 36,962 $ 34,731 $ 36,347 Noninterest income 8,746 9,750 21,554 Noninterest expense (34,919) (35,565) (35,761) Pre-tax / Pre-provision Net Revenue $ 10,789 $ 8,916 $ 22,140

19 Non-GAAP Financial Measures Return on Average Tangible Equity For the Three Months Ended June 30, 2023 March 31, 2024 June 30, 2024 dollars in thousands Net income $ 7,594 $ 3,269 $ 15,819 Intangible amortization, net of tax (1) 1,196 1,228 1,195 Tangible net income $ 8,790 $ 4,497 $ 17,014 Average shareholders' equity $ 504,988 $ 527,533 $ 533,994 Average intangible assets, net (90,258) (95,296) (99,309) Average tangible equity $ 414,730 $ 432,237 $ 434,685 Return on average equity 6.03 % 2.49 % 11.91 % Return on average tangible equity (2) 8.50 % 4.18 % 15.74 % (1) The combined income tax rate utilized was 25%. (2) Annualized tangible net income divided by average tangible equity. Net Interest Margin, Tax Equivalent For the Three Months Ended June 30, 2023 March 31, 2024 June 30, 2024 dollars in thousands Net interest Income $ 36,962 $ 34,731 $ 36,347 Tax equivalent adjustments: Loans (1) 713 920 938 Securities (1) 431 387 377 Net Interest Income, tax equivalent $ 38,106 $ 36,038 $ 37,662 Average interest earning assets $ 6,056,732 $ 6,215,160 $ 6,282,494 Net interest margin, tax equivalent (2) 2.52 % 2.33 % 2.41 % (1) The federal statutory tax rate utilized was 21%. (2) Annualized tax equivalent net interest income divided by average interest earning assets.

Cover Page	Jul. 23, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jul. 23, 2024
Entity Registrant Name	MidWestOne Financial Group, Inc.
Entity File Number	001-35968
Entity Incorporation, State or Country Code	IA
Entity Tax Identification Number	42-1206172
Entity Address, Address Line One	102 South Clinton Street
Entity Address, City or Town	Iowa City
Entity Address, State or Province	IA
Entity Address, Postal Zip Code	52240
City Area Code	319
Local Phone Number	356-5800
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock, $1.00 par value
Trading Symbol	MOFG
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001412665

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